Hong Kong e-commerce continues to rise, with numbers said to reaching 77% penetration this year and going to be 83.8% in 2025. Hong Kong has been named to be one of the most important international logistics hubs, with its advantages on taxation, physical location as well as frequent flight schedule. The simplest customs rules and shortened delivery time from shipping out of Hong Kong is often used as a selling point for worldwide seller.
A coin has 2 sides.
The associated delivery infrastructure has to meet higher delivery volumes. High land cost has been the challenging point to all business unit in HK. Right choice of warehousing logistics enables a hassle-free growth of business, on the other hand a big hurdle of daily operations.
Here comes with different type of warehousing option.
Types of international Warehouse (Quoted: International Warehouses: Tips for Global Commerce (2022) (shopify.hk))
A public warehouse is open for any business to use, at the discretion of the warehouse operator. It’s usually the first choice for ecommerce businesses looking for an international warehouse, since they can pay a fee to access existing storage and fulfillment options outside their own country, without building the warehouse themselves.
Unlike a public option, private warehouses are owned by private companies. Think of them as extensions of your business. If your headquarters are in the US, you could build a private warehouse—solely for your own use—in another country to cater to international shoppers.
A bonded warehouse is a place for businesses to store inventory set to be imported or exported. Also known as a customs warehouse and run by the local government, it’s a way for businesses to bring products in or out of the country without paying tax or import duties.
An international distribution center is different from traditional warehousing. A warehouse stores goods, while distribution centers can do additional tasks like fulfill and package orders. Some operators offer both services under the same roof.
To determine which of the above option fits your business model, few questions have to be clearly identified
1. Characteristics of goods to be stored
2. Storage requirements of your company
3. Estimated duration of storage needed
4. Security of the warehouse
5. Flexibility of future expansion
Warehousing allows your business for timely delivery and optimized distribution, leading to increased labor productivity and greater customer satisfaction. It also helps reduce errors and damage in the order fulfillment process.
More topics have to be involved for warehousing logistics including warehouse management system, choices of 3PL, etc. To conclude, warehousing logistics are not static. It changes from time to time with your business model and your physical needs, or any other factors that they govern. Key to the door of success will always be a close understand the market trends and intelligence, keep learning and adapting to all changes in the logistic world.